Identify Which of the Following Statements Is True

question 50

Multiple Choice

Identify which of the following statements is true.

• A) A stock redemption can be used to withdraw some assets from a corporation prior to a sale of the business.
• B) A shareholder can redeem part of his stock and recognize a capital gain if the corporation has only one shareholder.
• C) The distributing corporation's E&P must be reduced by the FMV of nontaxable stock rights distributed to shareholders.
• D) All of the above are false.

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Definitions:

Statute of Frauds

The Statute of Frauds is a legal concept that requires certain types of contracts to be in writing and signed by the party to be charged, in order to be legally enforceable.

Statute of Frauds

A legal principle requiring certain types of contracts to be written and signed to be enforceable, aiming to prevent fraud and misunderstandings.

UCC

The full spectrum of commercial dealings in the United States is under the regulation of the laws within the Uniform Commercial Code.

Writing Requirement

A legal principle that certain kinds of contracts must be in writing to be enforceable.